Chair of Lindsell Train warns of succession plan cost

Profit margins may fall

The chair of the Lindsell Train investment trust has warned shareholders that mechanisms in place since the inception of the management company Lindsell Train Limited may have to change as they look to retain talent and make succession plans.

Julian Cazalet explained in the annual report of the £209.2m trust, published today (15 June), the management company has been "taking steps to improve the durability of its business and implementing some important initiatives, with particular focus on succession". Cazalet explained LTL's profit margin is currently protected by its salary and bonus cap, which is 25% of all fee revenues other than those derived from the Lindsell Train investment trust. This policy has been in place since the company's inception and, together with the commitment from LTL to pay out 80% of its net profit...